Advanced wealth management tools

Menu

Monthly Archives: December 2016

Did you have fun this year? Well, it was not very bad, because there was some rollercoaster in the stock exchanges: Brexit, the unexpected victory of Donald Trump for the US presidency, the recent rate hike by the Fed, the Italian referendum or the ECB announcement about the cut of the money fuel have been some of the “funny” events for the markets.

We are now at the end of the year with the sight on 2017. What can we expect? Certainly, there are some people who do not believe in financial predictions, because they are usually wrong, as Barry Ritholtz jokes in this post. Others make also fun about it with the outrageous predictions, as Saxo Bank has positioned in the last years.

Others keep on doing some forecast about probable, but not sure, evolutions of the markets. For instance, Black Rock perceives three main trends:

Accelerating reflation in US

Low returns in investments that will force investors to more risky assets, as equities or alternatives.

Dispersion, with a widen gap between winners and losers in the stock markets.

The main risks for Black Rock are related to politics: the Brexit negotiation, the Trump agenda in US or the next elections in France and Germany are some critical points.

The forecasts by Goldman Sachs coincide partially with Black Rock, because the main ideas are: higher growth but higher risks and slightly higher returns.

The list could be longer, but there are some common points: investors perceive that politics will play a big role next year and will influence the market evolution and people will have to move to more risky assets. Monetary policy and currency evolution will also main themes, as they will condition trade and bonds.

We currently live in a time in which videos has become the main tool to communicate. In our case, we are always on the wave and that is why we have produced a collection of video tutorials to teach how to manage your portfolios in T-Advisor. This collection is organised in our platform in three different items:

I want to plan my investment goal and create a portfolio to achieve it.

I want to analyse my investment portfolio and assess it.

I want to look for assets to create an investment portfolio.

We are aware that our tools have some complexity, if you are new in finances, but we also know that our platform is one of the most powerful and complete in the market. And we offer it for individuals just for 0 euros. These videos and their organisation in three different items depending the personal interests help everyone to enjoy finances.

If you want to take advantage of using T-Advisor, just click on the following links to show these short tutorials and learn more about your platform to manage professionally your financial investments:

People out from investments usually think that this business is easy and high returns are the common rule. If you say: “I invest”, then they look at you as a rich person, when you probably try to avoid a lost of purchasing power caused by inflation. That is usually the most conservative strategy, but the idea behind that behaviour is capital preservation.

Capital preservation is defined as a conservative strategy that tries to avoid the loss of value of your investments. Some investors are just quiet if their money does not decrease, but this little ambition has an enemy: inflation. If the financial goal reduces only to that narrow meaning of capital preservation, they will surely lose purchasing power in the long term. That’s why this strategy is recommended for safe short-term investments, as bonds or certificates.

However, capital preservation means something else, because it is behind every investment strategy. Whether it is more aggressive or more conservative, it does not mean that the goal behind the scene will not be the same: to keep at least the same as we invest and keeping the same purchasing power. Possibly, someone argues that the more aggressive portfolios are designed to obtain the highest return accepting volatility, but no investor is so fool to accept losing their money without a B-plan.

This B-plan to preserve the capital is rebalancing. When an investor receives alerts from their system, he has to decide when to change his strategy. Regular investors are not traders, but they prefer to invest in the long-term. That’s why these investors have to avoid panic in certain periods when markets are bearish or react negatively due to any external reason (e.g. Brexit or similar). Investors have to look at the long term and analyse with their tools the real effect over their strategy and if they have to rebalance their portfolios. What for? First of all, to preserve their capital; secondly, to serve their strategy (more conservative or more aggressive).

In other words, as the main goal for companies is surviving in the markets, the main goal for an investor is preserving his capital. Returns will come, higher or lower, but these will be the second step. Alerts, optimising modules and bootstrapping systems (as T-Advisor has) are the tools to be successful for it.

T-Advisor, through its tool Market Opportunities, has detected the company CA Immobilien listed in the Vienna Stock Exchange, as an opportunity for investment.

These are the main figures about performances and volatility in the last years:

The chart shows the evolution in the last year:

The technical analysis reveals also more data:

Finally, the risk analysis is as it follows:

CA Immobilien is an Austrian real estate company with branch offices in Germany and some of Central and Eastern European countries. Its core business involves leasing, managing and developing office buildings. Founded in 1987, CA Immobilien controls property assets of around € 3.7 bn.It is involved with a number of large and notable buildings, including Tower 185, the Skyline Plaza complex in Frankfurt and the Europacity complex in Berlin

Rental income in 2015 reached €154.8 million, a 6.6% more than in 2014. The net result increased 273.5% between 2014 and 2015, up to €316 million, as a result of the cumulative revaluation. The share price doubled in the last 5 years.